Buying a New vs. Used Car

Which is better: buying used cars or new cars? If you’re looking for an upgrade for your St Louis commute, then you’ve probably considered one of those two options, but which option is right for you? Compare buying new vs. used cars with the finance team at Suntrup Volkswagen to see which option is better suited for your current circumstances. Then, visit our dealership to explore our new and used inventory to find a vehicle that has everything you need and is well within your budget.

Why Buy a New Car vs. Used? Pros & Cons

There are plenty of advantages and disadvantages to buying new vs. used cars, so to see which option is the best fit for you, it’s important to weigh the pros and cons. Compare the pros and cons of buying used cars vs. new cars below put together by our finance team:

Advantages of Buying New Cars

• Latest Technology: When you buy a new vehicle, you’ll have access to the newest technology features, which include entertainment technology and safety technology. Older vehicles may not have the latest features or may have outdated technology.
• Better Fuel Economy: Most modern vehicles are replacing V6 and V8 engines with turbocharged motors that are built for improved fuel economy. Because of this, newer vehicles usually offer better gas mileage than older models do.
• Warranty Coverage: Buying a new vehicle means getting the full warranty coverage that comes with the vehicle, which usually includes a bumper to bumper or powertrain warranty.

Disadvantages of Buying New Cars

• Higher Starting Price: Compared to buying a used car, buying a new vehicle is the more expensive option, and this includes higher taxes on the price that you pay for a new vehicle. It’s also worth considering that when the warranty coverage expires on a new car, the advanced technology and other features are usually more expensive to service and maintain than that of a pre-owned vehicle.

Advantages of Buying Used Cars

• Less Expensive: Buying a used vehicle is usually significantly less expensive than buying a new vehicle, and this includes factoring in paying for auto insurance and other taxes on the vehicle.
• Less Depreciation: Vehicles are depreciating assets, which means that they lose their value over time. In fact, a new vehicle starts to lose its value as soon as you drive it off the lot. Used vehicles have the advantage of having undergone most of their depreciation within the first two years and therefore having a much slower rate of depreciation than new vehicles. This means that you’ll have a better resale value on a used car than you would with a brand-new vehicle.
• Less Negative Equity: Having negative equity is when you owe more on your vehicle then what the vehicle is currently worth. Financing a used car means that you’re more likely to have a smaller loan amount, which reduces your chances of having negative equity or being upside down on your car loan.

Disadvantages of Buying Used Cars

• Higher Financing Price: Loans for used cars tend to have higher interest rates, which means higher monthly payments. However, this usually balances out as the overall purchase price of a used vehicle is lower than that of a new vehicle, meaning that the loan term will also be shorter.

Why buy a new car vs. used? Which option is better for you? Since every St Peters driver is different, we can’t answer this question for you. Speak with our team at Suntrup Volkswagen to see which option is better for you, and be sure to check out our other helpful car-buying tips when you visit us.

Find a New or Used Car in St. Louis

Contact us to explore our new and used inventory and see which of our available models is the right choice for you. If you’re considering buying a pre-owned car, then learn what to ask when buying a used vehicle with us.